Closing at its lowest mark since 2009, the Tenth District Manufacturing Survey for February was released. The survey reflected a continued pattern of deterioration over the past few months coming from both durable and nondurable goods factories.
“Energy-related firms generally had a negative outlook, but firms overall remained slightly optimistic about future factory activity,” said Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City.
The economic downturn in the energy sector continues to seep into the manufacturing industry. This year had a slow start. Compared to last year, shipments have fallen almost 25% while the production index remained consistent.
The survey further indicates that the energy industry remains lifeless with low expectations for the future. Costs continue to increase in response to laws, regulations and government activity during this difficult time.
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Kansas City Federal Reserve Bank
